ThomasM125
Expert Alumni

Get your taxes done using TurboTax

The way this normally goes is the discount for the shares you purchased is reported on your W-2 form in box 1 as ordinary income. Then, you receive a form 1099-B reporting the sale of the stock.

 

The cost basis on the form 1099-B normally does not list the discount amount reported on the W-2 form, so normally you can simply report the form 1099-R information in TurboTax as listed on the form and then enter an adjustment for the cost basis to make it right. You enter the adjustment when you enter the form 1099-B information by clicking on the "I'll enter additional information on my own" option on the entry screen:

 

 

 

So, if you can determine the income associated with the stock sales that was reported on your W-2 form, you can normally add that to the cost basis reported on your form 1099-B, and assuming the income was reported on your W-2 form, that is all you need to do to account for the ESPP stock sales.

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